Post-Selloff Stabilization
Can Bulls Sustain the Recovery?
🚀 Post-Selloff Stabilization – Can Bulls Sustain the Recovery?
📉 Power Hour Market Update for Subscribers
📌 Market Overview: Capitulation or Just a Pause?
🔹 After a sharp morning sell-off, markets stabilized as key levels held.
🔹 $ES front-ran our 6095 target, finding support just above.
🔹 $NQ dipped below our 21950-970 zone before reversing, marking a potential selling capitulation (at least until $NVDA earnings).
📌 Key shift:
$ES has now retraced most of the losses and is back near the opening range.
$NQ is pressing up against 22212 again, attempting a recovery.
🚨 Big event ahead: $NVDA earnings after the close. Expect increased volatility and a possible shift in market sentiment.
📊 Power Pivots & Key Levels to Watch
🔹 $ES Power Pivot: 6127
🔹 $NQ Power Pivot: 22100
📌 Resistance Levels:
6135-6140 ($ES) → Opening range high & key test for bulls
22212 ($NQ) → Previous breakdown zone that needs reclaiming
📌 Support Levels:
6115 ($ES) → Must hold for bulls to maintain momentum
22038 ($NQ) → Higher low area that must hold for continuation
📈 Trading Plan: What Comes Next?
1️⃣ Bullish Continuation Setup
✔ Trigger: If $ES holds above 6115 and $NQ reclaims 22212.
✔ Confirmation: A push above these levels with increasing volume.
✔ Targets:
🎯 First target: 6146 ($ES) / 22300 ($NQ)
🎯 Second target: 6157 ($ES) / 22405 ($NQ)
📌 What to Watch for Bull Strength:
✅ Buyers aggressively stepping in at pullbacks.
✅ Strong momentum pushing through resistance without hesitation.
2️⃣ Failed Bounce & Reversal Short Setup
❌ Trigger: If $ES struggles at 6135-6140 and $NQ fails to hold 22212.
❌ Confirmation: Weak rally with rejection at key levels.
❌ Targets:
First downside target: 6115 ($ES) / 22038 ($NQ)
Deeper sell-off: 6095 ($ES) / 21950 ($NQ)
📌 Signs of Weakness to Watch:
Lower highs forming near resistance → This signals exhaustion.
Failure to reclaim lost support → Trapped longs fueling another sell-off.
📚 Market Education: How to Spot Selling Capitulation
🔎 What is Capitulation?
Capitulation occurs when selling accelerates to a breaking point, triggering a sharp reversal as the last wave of sellers give up and cover positions.
How to Identify It in Real-Time:
✔ Large volume spikes at key support zones → Suggests forced liquidations.
✔ Sharp bounces from deeply oversold conditions → Indicates exhaustion.
✔ Higher low formation after the initial bounce → Confirms shift in momentum.
📌 Why This Matters Today:
The morning flush resembled capitulation, with $NQ dipping below 21950 before staging a strong recovery. Now, the market is deciding whether this was a short-term bottom or just a pause before further selling.
🔎 Final Thoughts & What to Watch Into the Close
✅ $ES must hold above 6115 to keep the rally alive.
✅ $NQ must reclaim 22212 for a full recovery.
✅ $NVDA earnings will be the wildcard—expect volatility.
⚠️ Be cautious into the close, as pre-earnings positioning can lead to unpredictable swings.
🚀 Stick to the plan, manage risk, and let the market guide us!
#SubscriberUpdate #TradingEducation #MarketLevels